Trade Secret Case: US Court Orders TCS To Pay $210 Million (Image: X @TCS)

A US jury has ordered the Indian IT services company Tata Consultancy Services (TCS) to pay $210 million to DXC Technology in a trade secrets case. The US Federal Court convicted TCS of stealing trade secrets from DXC Technology, a US IT services firm. This is another setback for TCS, as last week, the US Supreme Court rejected TCS”s appeal against a $140 million punitive damages order passed by a district court.

The case was filed by Computer Sciences Corporation (CSC) in 2019, which became DXC Technology after a merger. According to a report by the Economic Times, the DXC”s precursor claimed in the lawsuit that TCS had licensed its software to Transamerica subsidiary Money Services Inc and also collected a $2 billion deal from Transamerica in 2018. As per the lawsuit, TCS rebranded 2,200 Transamerica workers in 2018 and used their access to CSC”s software to gain knowledge of its source code and other information to create a life-insurance platform. It is to be noted that CSC has licensed its software to Transamerica.

The jury found that the TCS misused confidential information about DXC’s Vantage-One and CyberLife software to develop its own platform. However, TCS denied all the allegations. “The matter will now be decided by the Court, which has ordered further briefing from the parties. We plan to continue to litigate this ongoing case,” the Economic Times quoted a TCS spokesperson as saying. On November 21, the US Supreme Court rejected the TCS plea in a matter to the Epic Systems Corporation case. Epic had filed a case against TCS in 2014, claiming that TCS had stolen its intellectual property. The case was against TCS and Tata America International Corporation.